Charlotte Real Estate<br />A Factual Overview in a Time of Uncertainty<br />By: Eric J Cox, Realtor®<br />Cox Residential<...
About Eric J Cox:<br />	US Marine Corps combat veteran and author, Eric J Cox understands what it takes to accomplish miss...
 Soldier’s Angels (volunteer)
 Operation Homefront (volunteer)
 Honor Them Foundation (member)
 Operation PTSD (member)
 Veterans Help Network (member)
 Iraq & Afghanistan Veterans of America (member)
 CombatVets.org (member)
 USA Cares (member)
 Home Sweet Home Campaign (member)</li></li></ul><li>Seasonal Home Sales Cycle<br />2011 Copyright: Cox Residential, LLC. ...
3 Types of Markets<br />Buyers Market<br />More than 7 Months of Inventory<br />Sellers Market<br />Less than 5 Months of ...
Mecklenburg County Housing Inventory<br />2011 Copyright: Cox Residential, LLC. All Rights Reserved.<br />5<br />
Pricing : Up Market vs. Down Market<br />2011 Copyright: Cox Residential, LLC. All Rights Reserved.<br />6<br />Average Ho...
The Cost of Overpricing:<br />2011 Copyright: Cox Residential, LLC. All Rights Reserved.<br />7<br />Stable Market<br />De...
Pricing Into the Market:<br />2011 Copyright: Cox Residential, LLC. All Rights Reserved.<br />8<br />Buyers’ Market<br />S...
The Pond: Current Housing Market<br />2011 Copyright: Cox Residential, LLC. All Rights Reserved.<br />9<br />12% of Invent...
Mecklenburg County Days on Market<br />2011 Copyright: Cox Residential, LLC. All Rights Reserved.<br />10<br />
CMLS Entire Area List-to-Close<br />2011 Copyright: Cox Residential, LLC. All Rights Reserved.<br />11<br />
CMLS Active vs. Sold $150,000 & Under<br />2011 Copyright: Cox Residential, LLC. All Rights Reserved.<br />12<br />
CMLS Active vs. Sold $150,001-$250,000	<br />2011 Copyright: Cox Residential, LLC. All Rights Reserved.<br />13<br />
CMLS Active vs. Sold $250,001-$500,000<br />2011 Copyright: Cox Residential, LLC. All Rights Reserved.<br />14<br />
CMLS Active vs. Sold  $500,000 +<br />2011 Copyright: Cox Residential, LLC. All Rights Reserved.<br />15<br />
Timing the Market<br />2011 Copyright: Cox Residential, LLC. All Rights Reserved.<br />16<br />Unlucky Zone<br />Home Pric...
CMLS Total Sales Volume vs. Avg Sale Price<br />2011 Copyright: Cox Residential, LLC. All Rights Reserved.<br />17<br />
Mecklenburg County Average Sale Price<br />2011 Copyright: Cox Residential, LLC. All Rights Reserved.<br />18<br />
CMLS Average Monthly House Payment<br />2011 Copyright: Cox Residential, LLC. All Rights Reserved.<br />19<br />
Opportunity of Our Market: Trade Up<br />              Sarah pays $180,000 for her home in 2007<br />                     ...
Purchase price is $166,000
Down payment is $8,300
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Charlotte Real Estate - A Factual Overview in a Time of Uncertainty

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Charlotte, NC real estate presentation by Eric Cox - Realtor and broker/owner of Cox Residential.

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Charlotte Real Estate - A Factual Overview in a Time of Uncertainty

  1. 1. Charlotte Real Estate<br />A Factual Overview in a Time of Uncertainty<br />By: Eric J Cox, Realtor®<br />Cox Residential<br />2011 Copyright: Cox Residential, LLC. All Rights Reserved.<br />1<br />
  2. 2. About Eric J Cox:<br /> US Marine Corps combat veteran and author, Eric J Cox understands what it takes to accomplish missions (goals). Cox was nominated for the Realtor Rookie of the Year award following his inaugural year and has since risen to the top 1% of brokers in the Charlotte and surrounding areas with over $6MM in closed sales in last year's "down" market alone. Cox branched out in Feb of '11 and launched Cox Residential. <br /> Knowledge, experience and work ethic aside, Cox attributes his success to his genuine ability to Listen and Understand his clients. <br />2011 Copyright: Cox Residential, LLC. All Rights Reserved.<br />2<br />Honors & Credentials<br /> Licensed in NC<br /> Top Producer<br /> National Association of Realtors (NAR)<br /> North Carolina Association of Realtors (NCAR)<br /> Charlotte Regional Realtor Association (CRRA)<br /> Charlotte Multiple Listing Service (CMLS)<br /> 2010 Government Affairs Committee (CRRA)<br /> CRRA Vane Mingle Rookie of the Year Nominee<br /> Charlotte Style Magazine Top 25 Most Stylish <br /> People in Charlotte (emphasis on career success)<br />Community Involvement<br /><ul><li> Our Forgotten Warriors – Chairman
  3. 3. Soldier’s Angels (volunteer)
  4. 4. Operation Homefront (volunteer)
  5. 5. Honor Them Foundation (member)
  6. 6. Operation PTSD (member)
  7. 7. Veterans Help Network (member)
  8. 8. Iraq & Afghanistan Veterans of America (member)
  9. 9. CombatVets.org (member)
  10. 10. USA Cares (member)
  11. 11. Home Sweet Home Campaign (member)</li></li></ul><li>Seasonal Home Sales Cycle<br />2011 Copyright: Cox Residential, LLC. All Rights Reserved.<br />3<br />
  12. 12. 3 Types of Markets<br />Buyers Market<br />More than 7 Months of Inventory<br />Sellers Market<br />Less than 5 Months of Inventory<br />Equilibrium<br />Between 5 – 7 Months of Inventory<br />Months of Inventory Supply is defined as the total number of homes for sale in an area divided by the number of homes sold per month in that area.<br />Market Transitions:<br />National transitions occur slowly due to multiple markets and respective local economic conditions<br />Local market transitions occur very quickly<br />2011 Copyright: Cox Residential, LLC. All Rights Reserved.<br />4<br />
  13. 13. Mecklenburg County Housing Inventory<br />2011 Copyright: Cox Residential, LLC. All Rights Reserved.<br />5<br />
  14. 14. Pricing : Up Market vs. Down Market<br />2011 Copyright: Cox Residential, LLC. All Rights Reserved.<br />6<br />Average Home Price<br />Average Home Price<br />Price Seller Wants<br />Price Correction<br />Price Correction<br />Price Seller Wants<br />When They Get It<br />They Never Get It<br />Time on Market<br />Time on Market<br />Eventually time will correct high pricing and make agents appear smart when success is practically inevitable.<br />Seller ends up chasing the market down when the home should have been priced properly from the beginning.<br />
  15. 15. The Cost of Overpricing:<br />2011 Copyright: Cox Residential, LLC. All Rights Reserved.<br />7<br />Stable Market<br />Declining Market<br />Initial List Price<br />Initial List Price<br />Market Interest<br />Fair Market Value<br />Fair Market Value<br />COST of overpricing<br />Salable Price<br />Market Interest<br />Salable Price<br />Time on Market<br />Time on Market<br />Market interest is highest within the first 3 weeks on market. In a stable market, fair market value is stable. The salable price has to do with the psychology of buyer interest vs. elapsed time on market.<br />In a declining market, these characteristics are amplified. Additionally, homes that take price reductions take 3 times longer to sell than homes priced properly from the beginning.<br />
  16. 16. Pricing Into the Market:<br />2011 Copyright: Cox Residential, LLC. All Rights Reserved.<br />8<br />Buyers’ Market<br />Sellers’ Market<br />Above<br />Above<br />Price vs. Comps<br />Price vs. Comps<br />Out of the market<br />Out of <br />the market<br />In the market<br />Below<br />Below<br />In the market<br />Poor<br />Great<br />Great<br />Poor<br />Condition vs. Comps<br />Condition vs. Comps<br />In our buyers’ market, only a small percentage of homes - those in great condition priced below the comps are IN the market. <br />In a sellers’ market, only a small percentage of homes - those in the worst condition priced above the comps are OUT of the market.<br />
  17. 17. The Pond: Current Housing Market<br />2011 Copyright: Cox Residential, LLC. All Rights Reserved.<br />9<br />12% of Inventory<br />Sell and Exit the Pond<br />New Listings <br />Enter the Pond<br />FLOW<br />Best Value<br />Shown & Offers Made<br />SHOW<br />Shown but No Offers<br />Almost always due to condition but may be slightly overpriced.<br />24% of Inventory<br />No Man’s Land<br />STAGNANT MASS<br />Not Being Shown<br />Simply overpriced.<br />OUT of <br />the Market<br />64% of Inventory<br />
  18. 18. Mecklenburg County Days on Market<br />2011 Copyright: Cox Residential, LLC. All Rights Reserved.<br />10<br />
  19. 19. CMLS Entire Area List-to-Close<br />2011 Copyright: Cox Residential, LLC. All Rights Reserved.<br />11<br />
  20. 20. CMLS Active vs. Sold $150,000 & Under<br />2011 Copyright: Cox Residential, LLC. All Rights Reserved.<br />12<br />
  21. 21. CMLS Active vs. Sold $150,001-$250,000 <br />2011 Copyright: Cox Residential, LLC. All Rights Reserved.<br />13<br />
  22. 22. CMLS Active vs. Sold $250,001-$500,000<br />2011 Copyright: Cox Residential, LLC. All Rights Reserved.<br />14<br />
  23. 23. CMLS Active vs. Sold $500,000 +<br />2011 Copyright: Cox Residential, LLC. All Rights Reserved.<br />15<br />
  24. 24. Timing the Market<br />2011 Copyright: Cox Residential, LLC. All Rights Reserved.<br />16<br />Unlucky Zone<br />Home Prices<br /> Safe Zone<br />Lucky Zone<br />Market Transition <br />Point of Realization<br />Time<br />Markets are defined by past performance - no one can time a market. By the time a market is realized to have changed direction, it has already past bottom or top for some time.<br />
  25. 25. CMLS Total Sales Volume vs. Avg Sale Price<br />2011 Copyright: Cox Residential, LLC. All Rights Reserved.<br />17<br />
  26. 26. Mecklenburg County Average Sale Price<br />2011 Copyright: Cox Residential, LLC. All Rights Reserved.<br />18<br />
  27. 27. CMLS Average Monthly House Payment<br />2011 Copyright: Cox Residential, LLC. All Rights Reserved.<br />19<br />
  28. 28. Opportunity of Our Market: Trade Up<br /> Sarah pays $180,000 for her home in 2007<br /> Today her home is worth $153,000 (15% less)<br /> After selling & paying closing costs she gets $143,500<br /> Her mortgage on $130,000 at 6.75% is $843/mo<br /> She nets $ 13,500<br /> Due to real estate losses, she writes off $ 36,500 in taxes<br />2011 Copyright: Cox Residential, LLC. All Rights Reserved.<br />20<br /><ul><li>At 4.95% interest, payment remains at $843/mo
  29. 29. Purchase price is $166,000
  30. 30. Down payment is $8,300
  31. 31. Cash leftover is $5,200
  32. 32. Assuming new house was purchased 15% less than it was worth at the peak, new home is worth $196,000
  33. 33. Assuming new house was purchased as a distressed sale 30% less, new home is worth $238,000
  34. 34. Potential equity = $80,000
  35. 35. 5% down payment is $13,500
  36. 36. Purchase price is $270,000
  37. 37. At 4.95% interest, payment increases to $1441/mo
  38. 38. Assuming new house was purchased 15% less than it was worth at the peak, new home is worth $318,000
  39. 39. Assuming new house was purchased as a distressed sale 30% less, new home is worth $386,000
  40. 40. Potential equity = $129,500</li></li></ul><li>30-Year Fixed Mortgage Rate<br />2011 Copyright: Cox Residential, LLC. All Rights Reserved.<br />21<br />
  41. 41. Hazard of Our Market: Affordability<br />2011 Copyright: Cox Residential, LLC. All Rights Reserved.<br />22<br />
  42. 42. Home Affordability at $1500/mo<br />2011 Copyright: Cox Residential, LLC. All Rights Reserved.<br />23<br /><ul><li> Assumes Home Purchase Price at recorded 30-year fixed mortgage rates with 5% down payment
  43. 43. Does not factor Taxes or Insurance</li></li></ul><li>Financing Programs/ Options:<br />Physician 100%LTV, no PMI<br />100% up to $650k<br />95% up to $1 Million<br />90% over $1 Million<br />FHA 96.5% LTV, Low Credit Score<br />580 minimum credit<br />Assumable (allows someone to take over your payments should rates increase)<br />BB&T CHIP up to 100% LTV, no PMI<br />FHA 203 Rehab<br />Finance the cost of repairs into the loan<br />Roll 6 months of payments into the loan if uninhabitable at purchase<br />JUMBO loans up to 90% LTV, no PMI<br />ARM<br />When used properly, an excellent financial vehicle<br />Down Payment Assistance Programs<br />Revitalization loans such as House Charlotte or HomePath<br />Seller Financing<br />2011 Copyright: Cox Residential, LLC. All Rights Reserved.<br />24<br />
  44. 44. The Cost of Owning vs. Renting<br />2011 Copyright: Cox Residential, LLC. All Rights Reserved.<br />25<br />The average monthly cost of owning vs. renting a typical 3 bed, 2.5 bath home in…<br />Additionally, homeowners are able to deduct:<br /><ul><li>mortgage interest
  45. 45. property taxes
  46. 46. mortgage insurance (PMI)
  47. 47. any maintenance or repairs </li></ul>…from their taxable income.<br />* Owning figures above are not reduced by the annual tax savings<br />
  48. 48. Testimonials & Recommendations<br />“Eric Cox originally made contact with us on behalf of his buyers who were looking for a waterfront home on Lake Norman with similar features to ours. While our home's layout didn't work for his specific buyers, we were impressed with his innovative and common-sense approach. This prompted us to list our home with Eric and after following his advice, sold our home in just 4 days in this 'down market.'  Selling our 2nd home from out of state, we knew we were facing a challenge but Eric put our minds at ease. He gave sound advice when asked, made personal recommendations and lined up contractors for us. More than anything - he answered the phone when we calledand responded to our emails within minutes - that made all the difference! We absolutely endorse Eric Cox as great realtor always going above and beyond.<br /> -Robbie & Katrina Skelton<br />We picked Providence Country Club because it was beautiful and the house is very unique, one floor and in a great neighborhood. Our experience working with Eric Cox was incredibly good.  The whole process was very efficient and smooth.  Looking for and buying a home can be very stressful, however because of Eric, there was no stress at all.  We would not hesitate to recommend him to anyone. Thank you for your knowledge and professionalism Eric!"  <br /> -Randie & Claire Kopf<br /> Charlotte, NC<br /> <br />“I have hired Eric for multiple real estate projects including buying, selling and managing my real estate portfolio. Eric never fails to deliver quick, profitable results that exceed my expectations every time. I have known Eric for nearly a decade and he is one of the most honest and reputable men I know. I have the pleasure of calling Eric my real estate manager and my friend and I will never enter into a real estate transaction without Eric by my side. Please reach out to me at 704.280.3275 for a reference. 
<br /> -Trip Blazer<br /> Charlotte, NC<br />2011 Copyright: Cox Residential, LLC. All Rights Reserved.<br />26<br />
  49. 49. Testimonials & Recommendations<br /> <br />“We loved the house and the neighborhood! It is close to the interstates and very close to the city. We also felt it was a good deal for us. It was wonderful working with Eric Cox. He was very professional from day one and his response time to any questions or needs we had were prompt. We highly recommend his services to anyone buying or selling their home.”<br />  -Joe and Trish Olshefski<br /> Hilton Head, SC<br />Eric is an extremely dedicated agent. His knowledge, dependability, honesty, integrity and his unbelievable rapid response at all hours gave me confidence…I felt at ease with Eric and I always had a sense of peace that he would do his best on my behalf. Eric is truly a remarkable agent and person…<br /> As an Orthopedic Surgeon, I am in the “service industry” as well and believe I should be there in every way for my patients. Frequently, when I work with others, I feel that service is lacking. I am proud to say that Eric provided excellent service, above and beyond my expectations!  <br />I have recommended him to countless friends.<br />-Kent Ellington, MD<br /> Charlotte, NC<br />“Eric is a real go getter...he has quickly established a large base of business clients and continues to build the foundation for an outstanding career in Real Estate sales. He is service oriented and consistently presents value opportunities to his customers.” <br />-OK Hogan<br /> Elizabeth City, NC<br /> <br />"I have worked with Eric Cox for the past year on three separate investments.  Eric has been professional, knowledgeable and most helpful.  I am from out of state however when I deal with Eric for my investments I do so with complete confidence and trust." <br />  -Sara I. Sandoval San Diego, CA<br />2011 Copyright: Cox Residential, LLC. All Rights Reserved.<br />27<br />
  50. 50. Testimonials & Recommendations<br />“From my first meeting with Eric, it was evident he offers a deft combination of authenticity, professionalism, and patience. I felt comfortable with him from the start, and as my wife and I expand our real estate investment portfolio, I'll continue to seek him out. During some atypical scenarios that popped up in my deals, Eric was tireless in making extra phone calls on my behalf. Perhaps best of all, he is able to service my real estate investment needs on a wide continuum across the whole region, including distressed properties, new development, predevelopment, and even commercial interests. Eric is one of the hardest working professionals in real estate, and his attentiveness sets him even further apart.” <br />  -John Martin   Charlotte, NC <br />  <br />“Dear Eric, <br />I just wanted to let you know that you have helped me to find and purchase two pre-construction resort properties which I intend to resell and turn a nice little profit. You have given me guidance and advice that has helped to get good properties in places that will be of interest to investors as well as end users. You are also helping me to sell some properties and during the slow down in real estate sells you have brought several interested investors to the table. Thank you for you expertise and help,”<br />-Gary Lynn     Accuspect Investments, LLC        Asheville, NC <br />“Man, what to say about Eric... The guy's on fire. His enthusiasm about what he does is contagious and his drive to know all aspects of the real estate world is impressive…he has worked with buyers looking for a primary residence, investors looking for flips, and buyers wanting multi-million dollar commercial. He has worked aggressively at becoming a land and development expert and continues to push towards being a full resource for all matters real estate. I can't wait to see where his ambition and work ethic take him!”<br />  <br />-Brian Trainum<br /> Charlotte, NC<br />2011 Copyright: Cox Residential, LLC. All Rights Reserved.<br />28<br />
  51. 51. References & Sources:<br />Keller, Gary, Dave Jenks, Jay Papasan. Shift: How Real Estate Agents Tackle Tough Times. New York: Relleck Publishing Partners, Ltd. 2009. Print.<br />National Association of REALTORS®<br />Charlotte Regional REALTOR® Association<br />Carolina Multiple Listing Service<br />Federal Reserve<br />2011 Copyright: Cox Residential, LLC. All Rights Reserved.<br />29<br />
  52. 52. Thank You.<br />2011 Copyright: Cox Residential, LLC. All Rights Reserved.<br />30<br />Eric J Cox, Realtor®<br />Principal Broker, BIC<br />(704) 493-5981<br />Eric@CoxResidential.com<br />
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